[§428-504]  Rights of creditors.  (a)  On application by a judgment creditor of a member of a limited liability company or a member's transferee, a court having jurisdiction may order that the distributional interest of the judgment debtor be used to satisfy the judgment.  The court may appoint a receiver to carry out the provisions of the charging order.

     (b)  A charging order constitutes a lien on the judgment debtor's distributional interest.  The court may order a foreclosure of a lien on a distributional interest subject to the charging order at any time.  A purchaser at the foreclosure sale has the rights of a transferee.

     (c)  At any time before foreclosure, a distributional interest in a limited liability company which is charged may be redeemed:

     (1)  By the judgment debtor;

     (2)  With property other than the company's property, by one or more of the other members; or

     (3)  With the company's property, but only if permitted by the operating agreement.

     (d)  This chapter does not affect a member's right under exemption laws with respect to the member's distributional interest in a limited liability company.

     (e)  This section provides the exclusive remedy by which a judgment creditor of a member or a transferee may satisfy a judgment out of the judgment debtor's distributional interest in a limited liability company. [L 1996, c 92, pt of §1]